Economists at ANZ Bank expect the AUD/USD pair to reach the 0.75 mark by the end of the year. However, the Aussie could struggle in the near term.
AUD upside through 2023 driven by USD weakness
“We see the AUD finishing the year higher against the USD. This is mostly a function of a valuation unwind in the USD, which is still commanding a premium of more than 10% to our measure of fair value. This adjustment process won’t be linear, however, and the lower interest rate structure leaves the AUD vulnerable on cross exposures.”
“We expect downward pressure on the AUD/JPY as defensive flows and continued expectations of a policy reset will drive JPY higher.”
“We maintain our year-end forecast of 0.75 for AUD/USD but acknowledge that in the short term, fears about a global banking crisis are unlikely to inspire strong risk appetite, which may keep a lid on any upside.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.